When setting up a business in Thailand, you need to register with the Department of Revenue to get a Tax Identification Number. Depending on the type of your business, you may also need to register your company with the Value Added Tax (VAT) system as well.
The corporate tax rate is typically 30% of your company’s net income, while the VAT rate for personal income tax is currently at 7%. Your company must file VAT returns on a monthly basis.
We understand that doing Tax/VAT registration can be a hassle. That’s why we’re here to help you with the processes.
The General Tax/VAT procedure and guidelines in Thailand will be provided in the section below:
The first thing you need to do is prepare all of the required documents. These documents provide specific information about your business.
Anyone who wants to register for Tax/Vat will be required to fill an application form. You will then have to submit this form along with the required documents.
The company or individual subject to VAT is required to meet the VAT return filing schedule after the notice of registration has been issued.
Once you have submitted the form and the required documents, all you need to do is wait for approval, which usually takes 1 or 2 working days.
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Below is a more comprehensive description of Tax and VAT, the types of companies required to register for Tax/VAT, and when you need to register.
We can help you register for Tax, VAT, or both.
All companies registered under Thai law are subject to taxation.
Within the first two months of beginning operation, your business must register corporate income tax and obtain a tax number and ID card from the Revenue Department.
The corporate tax rate is usually 30% of your company’s net income. You must file two returns with the Revenue Department annually. The first return is filed two months following the end of the first six months of your company’s tax year. You have to pay half of the estimated taxes projected for the entire year when you file this return. The second return is filed within 150 days of the end of your company’s tax year. You must pay the total remaining tax due when you file the second return.
If your company has a gross income of 300,000 THB or month in a month, or 1,800,000 THB or more per year, and you sell goods or supplies services that are liable to VAT, you must register with the VAT system. You must also register for VAT if your company imports goods.
You need to register for VAT within 30 days of reaching the income threshold and file a VAT return monthly. Currently, the VAT rate in Thailand is 7%.
Some types of services, as listed above, are exempt from VAT. There are also some businesses that are zero-rated. If your business is not required to register with the VAT system, you may still do so voluntarily.
Personal income tax is a direct tax levied on personal income, including an individual, an ordinary partnership, a non-juristic person, or undivided estate.
Personal income tax will compute and charged on an annual basis. Typically, this tax is only levied from the person who receives income that sources within the country. However, if you are residing over 180 days and receive income from foreign sources during the same year, you may also be subjected to income tax.
Nevertheless, if your income is not over 150,000 baht per year, the income tax will exempt.
Stamp duty tax: It’s applied to the execution of instruments prescribed to stamp tax. The tax rate is between 0.05 to 1% of the instrument’s value.
Excise tax: This tax will be levied from the manufacturer, merchant, or importer who sells goods such as tobacco, liquor, soft drink, etc.
Property tax: This tax may be imposed on the owners of commercial buildings and vacant land areas on mountains or in water basins.
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Monthly Report – A monthly VAT report will contain all sales and business transactions, which are required by the Revenue Department. Usually, a business has monthly reports summarising a variety of different types of operations. This includes information on receivable and payable accounts, salaries, and tax withholding.
Withholding tax records include information on all taxes raised by deductions from salaries and payments for services. The company is expected to file a monthly report and resubmit the withheld tax and report on social security payments for each employee of the company.
Yearly Report – The Department of Revenue of Thailand requires businesses to report their financial statements. The yearly reports must include profit and loss, cash flow, equity change, and the balance sheet. the company will report financial statements that contain all financial details related to the company at the end of the year.
We offer various other corporate services for your business in Thailand.
The Thailand Board of Investment (BOI) is a government body to encourage foreign investment in Thailand. Being certified by BOI can give your business a range of benefits.
Here is some additional information about Tax and VAT registration in Thailand. Check out the section below for what required documents you should prepare for the registration.
A set of house registration copies and ID card of the owner with an approval signature attached.
A set of house registration copies of the company building with the signature of the owner attached.
A set of ID card copies of the business director copy and signature attached.
Company headquarter photos.
A set of company map copies with the certificate and signature of the owner.
A set of rental contract copies in case you are renting the building.
You must bring a copy of your companies registration documentations.
Starting a business while managing your accounts efficiently is difficult. That’s why a company cannot exist or operate without the help of professional accountants. Accountants play a significant role in numerous things, including tax preparation services, auditing, bookkeeping, and consultancy.
The Thaiger can help you manage and run your business in Thailand and help you understand tax liabilities and accounting services in Thailand.
There are many stages of gradation, from 0 % for earnings below 150,000 Baht, to 30% for earnings over 4 million Baht. VAT in Thailand is imposed at a flat rate of 7%.
It depends on how serious the case is. However, there can be a fine between 1,000 baht and 200,000 baht.
VAT refers to a tax on the selling of goods or products, there will be a charge of 7% from the original price.